Pakistan’s economy to slow down to 3.5pc in FY23 due to climate headwinds: ADB

The Asian Development Bank (ADB) said on Wednesday that while Pakistan’s economic growth reached around six per cent in FY22, it was expected to slow down in the current fiscal year to 3.5pc because of double-digit inflation, climate headwinds and policy efforts. In the latest Asian Development Outlook update, the ADB revised Pakistan’s growth estimates from 4.5 to 3.5pc amid devastating floods, policy tightening, and critical efforts to tackle sizeable fiscal and external imbalances. It stated that growth in FY22 was driven by higher private consumption and an expansion in agriculture, services and industry, particularly large-scale manufacturing. ADB Country Director for Pakistan Yong Ye said the recent floods that caused widespread damage had added “profound risk to the country’s economic outlook”.